Wednesday, 16 November, 2011 | 12:43 WIB
Indonesia Not Utilizing IDB Fund Efficiently
TEMPO Interactive, Jakarta:Despite its large shares, Indonesia’s absorption of the Islamic Development Bank (IDB) loan remains low.
Former IDB executive-director to Indonesia, Karnaen A. Perwataatmadja, said the absorption of IDB funding by the Indonesian private sector was lower than other members. “In other countries, the benefit was higher than the fee,” he said in a seminar titled “Indonesian Private Sector Funding Access from IDB Group Fund Resource” in Jakarta yesterday.
Fiscal Policy Board’s Investment Trend Changes and Multilateral Center deputy director, Adriyanto, said that from 2005 until March 2011, IDB’s funding institution, the Islamic Corporation for the Development of Private Sector (ICD), has only disbursed US$ 26.8 million. “This is only one percent of the commitment,” he said.
The minimum absorption by Indonesia’s private sector, he added, was influenced by the slow approval process and the high ICD interest. He said that between 2011 and 2014, the ICD had prepared $1 billion for private sector funding in Indonesia.
Indonesia is one of the 56 IDB country members. As the initiator, as much as $594.220 was invested in 1975. Until 2010, Indonesia had 475 shares or more than Brunei Darussalam, Egypt and Malaysia.